In the I-SEM, over 500 MW of batteries are operational, with over 1 GW of assets with connection offers in the pipeline. The majority of operational battery capacity participates in DS3, under the current regime of regulated arrangements. Total expenditure to procure DS3 capacity in the regulated arrangements is volume-dependent and based on fixed tariffs and is therefore increasing as batteries and other DS3 technologies deploy.
Expecting a breach of the 235m Euro/year cap, EirGrid and SONI released the ‘DS3 System Services Tariffs Consultation Document’ in September, exploring four options to reduce expenditure during the regulated arrangements. The results of the consultation are due to be implemented by EirGrid and SONI in Q1 2023.
These slides consider the implications of the DS3 regulated arrangements expenditure consultation in the I-SEM, with a focus on:
- What are the options for reducing the costs of regulated DS3 schemes before the anticipated transition to competitive arrangements in spring 2024?
- Which option reduces total DS3 expenditure the most relative to the current regulated arrangements, and which maintains the highest battery revenues?
- What uncertainties need to be considered over the next few years of regulated arrangements, and how could these affect the impacts of each expenditure option?
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